SteelOrbis talked to Selçuk Sarıtaş, general manager of Sarıtaş Stainless Steel, regarding their investment in Yalova and the latest situation in the market.
Can you provide information about the current situation in the stainless steel sector?
The stainless steel sector is undergoing a transformation process both globally and locally. According to a report published by Allied Market Research[1], the global stainless steel market, valued at $120 billion in 2023, is expected to grow by an average of 5.1 percent per year until 2032, reaching $205 billion. Industrial demand for stainless steel is increasing in areas such as construction, automotive and energy.
In Turkey specifically, annual stainless steel consumption is estimated to exceed 600,000 tons. However, a large portion of this demand is met through imports. It is of strategic importance for domestic production to reach a level that can respond to this situation. At Sarıtaş, we are carefully analyzing this situation and taking steps to reduce dependence on imports and increase value-added industrial production in the country with the integrated facility investment we have started in Yalova.
How would you describe the trends in demand and prices?
On the demand side, we observed a slowdown in the first half of the year, particularly in the domestic market. The stagnation in sectors that heavily use stainless steel, such as construction, automotive and white goods, directly affected the market. However, there are signs of recovery for the second half of the year. We expect demand to be more balanced for the remainder of the year, particularly in line with the increase in industrial production.
Can you tell us about your new investment in Yalova?
The process that began with investment in land in the Yalova Machine Specialized Organized Industrial Zone in 2024 is an important milestone not only for Sarıtaş but also for Turkey's industrial history. Once this investment is completed, we will have a domestic and national integrated stainless steel production facility with an annual production capacity of 800,000 tons. We are talking about a facility large enough to meet Turkey's current demand for 600,000 tons of cold rolled stainless steel on its own. Our investment consists of four phases. In the first two phases, we will reach a production capacity of 400,000 tons by commissioning the cold rolling lines in 2027. We will transition to a fully integrated structure with the completion of the hot rolling line in 2028 and our steel smelting facility in 2030. With this project, we aim not only to reduce dependence on imports, but also to make our country a regional power in stainless steel production. This investment, which will provide employment for a total of 1,200 people, will make a strong contribution to our country's vision of value-added production in industry.
The ongoing antidumping duty investigation against imports from China and Indonesia is expected to be concluded soon. What will be the impact on the market?
The lack of an integrated stainless steel production facility in Turkey today poses a serious obstacle to the development of the sector. Current capacity is limited to only 200,000 tons, and more than 70 percent of the stainless steel consumed in the domestic market is met through imports. This situation negatively affects not only domestic producers, but also the competitiveness of the entire sector. We believe that the investment Sarıtaş has initiated has the potential to solve this structural problem in the sector. However, we are aware that, while carrying out this process, we must adopt an inclusive and balanced approach to communication, without excluding other players in the sector. The result of multiple players in the sector producing competitively will naturally lead to a balancing of prices. We believe that, instead of exclusionary measures such as antidumping, there is a need for long-term strategies that encourage domestic production and consider the public benefit.
Can you tell us about your position and goals in export markets?
As Sarıtaş, we currently have over 65 production lines, giving us Europe's most comprehensive stainless steel processing infrastructure. This infrastructure puts us in a strong position not only in the Turkish market, but also in global markets. We have exported to 59 different countries over the past five years. Our goal is to increase our share in Europe and to have a greater presence in strategic regions such as the Middle East, North Africa and America. In this regard, we are focusing on establishing sustainable export relationships by highlighting our product quality and service speed. When our new investment in Yalova is completed, our annual production capacity will reach 800,000 tons. This will make us a regional production and export hub.
How are the current economic conditions affecting the market?
Ongoing economic uncertainties on a global scale are causing serious fluctuations in many areas, from raw material costs to energy prices. In Turkey specifically, high inflation, exchange rate volatility and difficulties in accessing finance are negatively affecting the planning processes for industrialists. We see this process not only as a risk, but also as an opportunity to take a strategic position. We are making our structure more resilient to economic fluctuations with digitalization investments and capacity expansion projects that will increase our operational efficiency. Strengthening domestic production and reducing dependence on imports have also become more critical goals during this period.
How is 2025 going and what are your expectations for the rest of the year?
In 2025, a year that brings both challenges and opportunities, we at Sarıtaş are resolutely pursuing our planned growth strategy. Our integrated facility in Yalova is the most critical item on the agenda this year. With the investment in a solar energy power plant we have implemented at our Gebze facility, we aim to meet 55 percent of our energy needs from solar power. We are strengthening our Industry 5.0-compatible production structure with digitalization investments. Our goal is to end the year on a strong note with stability in the domestic market and new openings in foreign markets.
[1] Source: Allied Market Research - Stainless Steel Market Report https://www.alliedmarketresearch.com/stainless-steel-market